Current Status Introducing Body:Senate Bill Number:264 Primary Sponsor:Mullinax Committee Number:12 Type of Legislation:GB Subject:Price Gouging Act Residing Body:Senate Current Committee:Labor, Commerce & Industry Computer Document Number:264 Introduced Date:Jan 08, 1991 Last History Body:Senate Last History Date:Jan 08, 1991 Last History Type:Introduced and read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Mullinax Type of Legislation:General Bill
Bill Body Date Action Description CMN
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264 Senate Jan 08, 1991 Introduced and read first 12
time, referred to Committee
264 Senate Oct 29, 1990 Prefiled, referred to 12
Committee
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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 7 TO CHAPTER 41, TITLE 39 SO AS TO PROHIBIT PRICE GOUGING IN THE MARKET AREA OF FUEL PRODUCTS AND PROVIDE PENALTIES FOR VIOLATIONS.
Whereas, the General Assembly finds that fuel products are essential commodities for residential and business consumers in South Carolina, and they are vital to the health, safety, and welfare of those consumers; and
Whereas, in recent years, due to rising prices and limited refining production and crude oil reserves, consumers have experienced dramatic increases in the price of fuel products. Consumers have had to pay unconscionable prices; and
Whereas, control of pricing in the market area of fuel products represents a permissible power of the State, and it is in the public interest to require that unconscionable prices be prohibited and made subject to civil penalty; and
Whereas, the General Assembly finds that legislation is necessary to prohibit refiners and sellers from raising market prices on fuel products to unconscionable prices, which must be paid by the consumer, and to encourage the independence of United States oil companies from foreign crude oil in times of worldwide emergencies. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 41, Title 39 of the 1976 Code is amended by adding:
Section 39-41-710. This article is known as the 'Price Gouging Act'.
Section 39-41-720. As used in this article:
(1) 'Abnormal disruption of market' means the substantial imbalance of usual conditions of supply and demand for fuel products caused by:
(a) act of war;
(b) embargo imposed by a foreign nation;
(c) civil disorder;
(d) disruption in industrial operation;
(e) strike;
(f) disruption of transportation; or
(g) rare or extreme weather conditions. This subitem includes, but is not limited to, hurricanes, tornadoes, and extremely hot or subfreezing temperatures.
(2) 'Consumer' means a person who purchases a fuel product. It includes the State and its political subdivisions.
(3) 'Fair price' means the market price of the fuel product, calculated under normal, generally accepted accounting principles applied on a consistent basis, absent an abnormal disruption of market.
(4) 'Fuel product' means home-heating oil, kerosene, propane, natural gas, diesel fuel, and gasoline.
(5) 'Price gouging' means charging an unconscionable price when there is an abnormal disruption of market.
(6) 'Seller' means a refiner, market speculator, distributor, retailer, reseller, or jobber who sells a fuel product.
(7) 'Unconscionable price' means a price for a fuel product which is excessive, unreasonable, or shockingly unfair or unjust and is not justified directly by actual cost increases incurred, either with respect to the fuel product sold or its replacement value, because of an abnormal disruption of market. The occurrence of one or more of the following at a time of an abnormal disruption of market raises a rebuttable presumption that an unconscionable price is being charged:
(a) price increase of ten percent or more in a ten-day period;
(b) gross disparity between the price charged and the price for the product when purchased by the seller;
(c) price that grossly exceeds the price at which the same product is readily obtainable in the market area.
Section 39-41-730. This article applies to fuel products sold or offered for sale in South Carolina, sales made to consumers, and sales made anywhere in the chain of distribution.
Section 39-41-740. (A) A seller may not engage in price gouging.
(B) The Attorney General may investigate violations of this article.
(C) In the investigations he may issue subpoenas to require the attendance of witnesses and the production of documents.
Section 39-41-750. (A) A consumer may bring an action against a seller for a violation of this article. The measure of damages is the difference between the fair price and the unconscionable price. Within ten days of filing a complaint under this subsection, the plaintiff shall notify the Attorney General of the action by registered mail.
(B) The Attorney General may bring an action for a civil penalty of twenty-five thousand dollars against a seller for each violation of this article.
(C) The court may award court costs and reasonable attorney's fees to a successful litigant under subsection (A).
Section 39-41-760. A violation of this article is a violation of the South Carolina Unfair Trade Practices Act."
SECTION 2. This act takes effect upon approval by the Governor.